2020 is a turning point for the insurance industry. The COVID-19 pandemic will force many insurance providers to reimagine their business operations and customer experience. The unique and unparalleled nature of this crisis brought about challenging new circumstances with economic shutdowns and physical distancing. Increased claims, additional risk, and solvency challenges are only a few examples of the current issues facing the insurance providers.
Nevertheless, the industry is persevering. Insurance providers are accelerating investment in digitization and closing gaps in business continuity models. The integration of third-party data to mitigate risk is increasing in urgency. During this time, customers are reminded of how significant the role of insurance is in their lives. For example, health coverage assists with drug and treatment plans for the ill; employment insurance helps those impacted by the economic turmoil, and business interruption coverage supports businesses unable to operate.
Companies must continue investing and enabling access for customers while ensuring underwriters are well-informed of upcoming risks.
Crises like COVID-19 highlight the need for insurers to seamlessly integrate reliable data sources, actionable insights, and responsive control measures to help navigate the uncertain landscape. By leveraging data and investing in digitization and analytics, insurers can navigate this challenging period and move the industry forward.